Principles of market movements

EUA
pipsing
In pipsing it is very important to understand simple rule-max volumes on the lows are buy positions, and on hights- sell positions.On the highest and lowest peaks insiders open big positions that reverses the market.So we just have to wait till this max volumes will be touched and market will rebound from them.

On this chart we see how big players entered their positions on the low of the day:

http://savepic.ru/350072.png


http://savepic.ru/348024.png

The best trades on pipsing -when big positions on the hights and lows stick together.
For example on chart you see how at 10:15:15 big position of 107 lots appeared on the price 1,4206.Than at 10:16:19 we see 126 and 57 lots on 1,4205.
Time interval- about minute.2 or 3 positions stick together on one price- that is very important level.Than we see how market touched this level and rebounded.Here we should buy.
p.s. level-price with large volume.

http://savepic.ru/371579.png


http://savepic.ru/376699.png

Hi Alex,
Would you show us how today's EUA tick cluster chart is looking?

Yes.Nice trade 10 min ago .And today`s tick volumes.

http://savepic.ru/393082.png

http://savepic.ru/386938.png

Thanks for the charts Alex.

I am new to Volume and still trying to understand how it can help.
Looking at one of your earlier illustrations, can you help me understand how you would know whether you should buy or sell when you see high volume.

It depends on what volume you consider.For example- on your picture we see how happens forming of max volume of an hour.Than next hour touches price with max volume and rebounds.Only next hour.It is really important.Volume, price and time.I don`t predict where will market go, but I make all my trades only in the same direction as trend goes.I have sell-zones and buy-zones I wrote about it.About for which time max volumes should be forming-I wrote too.

Hi priceaction,

I´am new to volume too, but I think its one -maybe the- key to trading.

As far as I understand, you should look for this situation:

If the price is going down, and volume is going up, there is a good
chance for a long trade. Watch the change in the color of the candles Nr. 1 and Nr. 2, and compare the volume bar Nr. 1 and 2. Volume bars are rising, and price is changing direction. This is the point of entry.

It is easy to spot this after it has happend.

Hope its a correct explanation, but maybe this is not the right place for volume newbie discussion, because what alex is doing here, is real professional stuff

Thanks for your postings alex, very good work

I've been studying your stuff and working in volfix. I have a question though. If we buy or sell the pullback off of a max volume and there is no max volume to trade to, where is our target?

i can only advise everybody to stick using targets. who i nthe world can determine how far price will go?

you either limit your possible reward or even let a good trade turn into a loser..which in no way should happen.

i would advise to use the following:

close 50% of the position at 1.5x stop size (in case u use reasonable stops and not just fixed numbers)
other 50% stop to b/e and then trailing down using a volatility based approach like ATR or shortterm price capture lines.

let the market take you out by coming back to the trailing sl and do not close the trade at a fixed position.

That makes sense. I couldn't think of anything else to do. I have been using the volume for the entry and a fibs for targets though. It works well.

Hello Scotty B where can i find the volume histograme that you are using? Thank you

You have to message alex at the address he provided. The volumes come from the futures market. There is no kind of quality volume data in MT4. I take the volume data from a different service and apply it to my chart.

Ok thank you!

Targets may be different- from closest large volumes, to some ammount of points.This question needs some examples- you can ask me in skype.

Yesterday morning I wrote analysis on s&p 500 emini, about current situation.But I fogot it to post.Now you may watch it

Max volumes of the contract:

http://savepic.ru/382840.png

872-873 it is also max volume of week that was before previous.

Max volume of current week= max volume of Monday:

http://savepic.ru/369528.png

Now we put this prices to week`s chart to analyse what may happen and how will we react:

http://savepic.ru/370305.png

In "Corridor" of these prices we do nothing.If the market falls under the price 868.50, it is necessary to look for sales.And above the price 873 will be short buys. Why short?Because above are volumes of last week which will be resistance for the market to gain. Here you should be very careful.
That is how we understand what the trend is on the market right now.

Current situation on s&p:
Current situation on S&P: Yesterday, as well as it was supposed, in the market there was a negative background, all the day the market was in sale.Yesterday important levels were made.And from them we will look for market movements:


http://savepic.ru/339585.png

This is chart with important levels- max volumes from last week and max volumes of contract:

http://savepic.ru/385664.png

On the chart you see price ranges thanks to which we can indicate a trend.
Such analysis is necessary do every day before the trading session begins.

Yesterday I also wrote analysis on EUA:
Now we see how it was yesterday morning:
Sell from max volume of the contract 1.4025 to the price 1.39 - it was previous max volume of the contract.
On Monday - European session: at 04:29 there was a sale with rebound from max volume of the contract 1,4025 and as the market goes from volume to volume they came to the price 1.39.

During the Chicago session market made max volume of the day on 1.3955 has been generated, and at the price of 1.39 have made large volume of 983 lots, that is how on Monday they transffered max volume of the contract to the price 1.39.
On Monday it was possible to hold position "sell" to first large volume- which was on 1,39.And they came to 1.39- opened there large positions, made this price- new price with max volume of contract and stopped declining trend.
Tuesday has opened in the same price range as Monday, but in a "corridor" between 2 prices with max volumes of the contract.
As the market is above max volume of the contract - it is in "buy zone", but if it is in a "corridor" of such volumes-we need first for market to get out of this corridor and than we will look for position to buy- nice oppoturnity to buy from 1,025.For sell- wee need market to break 1,39.
On the chart you see volumes of last week (1,2,3,4,5 - on sequence of days of week),prices with max volumes of the contract and max volumes of Monday(22.12).With indicated zones for trades. Buy from 1.3955 (volume of Monday) to 2nd price with max volume of contract, or short sale from 1.3955 to the max volume of contract.I fmarket will decline- hold to 1.39, not against 1.39

http://savepic.ru/331394.png

At volume counter you can see all the prices with max volumes of the contract.To the first two prices we pay our attention.

http://savepic.ru/335737.png

On Monday EUA made volume on 1.3965 and declined.It was possible to open "sell" position only from volume of Monday, the market "worked this price off" in touch and declined.As I already wrote- hold this position only to 1.39 (that day-it was a price with max volume of contract).As they did not break max volume of contract and rebound, they came back to volumes of Monday and Tuesday, and in that "narrow corridor" market finally formed enough volume to make 1.394- price with max volume of the conract(4040 lots).

Situation on EUA market:
Market is in "corridor" 1.4025-1.39
max volume of contract- 1.394
-short risky sell from price with max volume- 1.394 to 1.39
-sell under 1.39
-buy: only above 1.397(max volume of Wednesday) and hold till 1.4025

Till market is in corridor 1.39 -1.394 it`s better not to open any positions and wait.

Markets are closed.Marry Christmas!

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http://savepic.ru/363176.png

Maybe this indicator can help for mt4 platform

I noticed that even though forex doesn't have true volume, that if you look at the volume on a chart( I start out looking at vol. on a 60 min chart and work my way to down to 15 and 5 min charts, then a get a price range from the high volumes)...you can see that the range does act as sup/res...

I will continue to look into this....very interesting.